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Thu, Jan. 14, 4:58 PM
- YPF and American Energy Partners, run by former Chesapeake Energy founder and CEO Aubrey McClendon, sign a deal to jointly explore and develop unconventional oil and gas projects in Argentina.
- The deal is the latest in a series of international joint ventures by YPF and underscores growing global interest in Argentina's Vaca Muerta shale formation; the state-run company already has signed multibillion-dollar deals with companies including Chevron and Malaysia's Petronas, and last month reached a $500M shale deal with Dow Chemical; unlike the other projects, YPF plans to turn over operations to American Energy in the latest deal.
- McClendon's company will now seek to raise funds over the next two months to assure its 50% participation in a pilot project with YPF that would invest $500M over the next three years.
Dec. 15, 2015, 10:11 AM
- Argentina's state-run YPF (YPF +5.3%) oil company and the local unit of Dow Chemical (DOW -0.5%) plan to invest $400M-$500M to explore for shale gas, Dow Jones reports.
- The companies already are involved in a joint venture which is the leading shale gas project of its kind in Argentina, with production of ~750K cm/day; the aim would be to nearly triple that amount next year to ~2M cm/day.
- The deal would mark the first significant foreign investment in Argentina since newly elected Pres. Macri took office last week.
Nov. 20, 2015, 10:53 AM
- Production from Argentina's Vaca Muerta shale play is expected to double by 2018, according to a new development study by Wood Mackenzie.
- The study says oil and gas output from the play will be moderate in 2016, with a Y/Y production increase of 10%, but the increase will see a sharp upturn by 2020.
- The consultant sees ~200 wells brought online in the region in 2015, with fewer in 2016 as vertical wells are phased down.
- In order to fully develop Vaca Muerta, the study suggests that more joint venture deals will be necessary, as YPF will need outside assistance to develop the 6.3M acres it holds.
- Related tickers: XOM, CVX, RDS.A, RDS.B
Nov. 10, 2015, 3:37 PM
- Argentina's Supreme Court orders government-run YPF (YPF +1.5%) to disclose the details of an investment deal with Chevron (CVX +0.9%) to produce oil and gas by hydraulic fracturing in the Vaca Muerta shale deposit, dismissing claims that releasing confidential information could affect the development of the deal.
- Opposition politicians, environmental groups and others had criticized potential environmental problems and the government's refusal to release all of the contract's provisions; some have alleged the deal contains secret clauses that hand concessions to CVX and undermine national interests.
Oct. 26, 2015, 9:15 AM
Oct. 7, 2015, 2:59 PM
- YPF (YPF +7%) knows the fair value of Petrobras' (PBR +2.4%) local assets and would proceed with an acquisition only if the price meets its criteria, CFO Daniel Gonzalez says, declining to confirm or deny an article in the La Nacion newspaper that said YPF abandoned a bid after Petrobras Argentina (PZE -1.4%) asked it to raise its reported $900M offer for a 67% stake.
- YPF is concentrating on gas projects, Gonzalez says; PZE is focusing mostly on unconventional exploration and production and has started drilling at the vast Vaca Muerta shale gas and oil deposit, where YPF has sunk 400 wells.
Oct. 6, 2015, 6:02 PM
- Argentina's YPF has cut the price it pays to producers of light crude oil, in one of the first signs of closing a gap between high domestic and lower international prices, Bloomberg reports.
- YPF is said to be paying $75/bbl of Medanito, a light crude produced in the Neuquen basin, a slight reduction from $77/bbl earlier this year.
- "Any move to remove distortions in the market is a positive," says Michael Roche, a strategist at Seaport Global Holdings.
Sep. 25, 2015, 12:43 PM
- YPF (YPF -1.3%) would cut spending by as much as 20% next year if a new government in Argentina lowers the domestic oil price nearer to international levels, Bloomberg reports.
- The state-controlled company would lower its 2016 budget from this year’s $6B, mainly in operations at the Vaca Muerta shale formation, according to the report.
- While oil majors broadly cut 2015 spending, YPF kept its capital budget intact from last year, helped by the government which fixed a local oil price $77/bbl; the next administration has said it plans to lower the country’s crude price to $66, triggering the YPF budget cut.
Sep. 4, 2015, 9:11 AM
- YPF and Gazprom (OTCPK:OGZPY) sign a framework agreement that could lead to joint development of unconventional gas projects in Argentina.
- YPF is seeking partners to finance development of the huge but barely tapped Vaca Muerta shale formation that contains at least 23B barrels of oil, while Russia's Gazprom looks to expand oil and gas projects around the world.
- Although the companies did not discuss numbers, YPF hopes that a deal with Gazprom could eventually become similar in scale to multi-billion dollar joint ventures already in place with Chevron and Petronas.
Aug. 6, 2015, 12:44 PM
- YPF (YPF +1.7%) posted Q2 earnings that beat expectations, rising to 2.3B pesos ($250M) from 1.5B pesos in the year-ago quarter, as it increased production and sold crude at a premium to international prices.
- YPF has been somewhat cushioned from the collapse in oil prices because the government-controlled Argentina price is near $78/bbl, while the international Brent benchmark has dropped below $50.
- Q2 EBITDA jumped 13.3% Y/Y to 12.4B pesos, total sales rose 12% to 39.6B pesos, and downstream sales increased 6.6% to 35.3B pesos.
- YPF’s Q2 total hydrocarbon production rose 2.6% Y/Y, with natural gas output higher by 2.3% higher and crude oil increasing by 3.7%
Jul. 17, 2015, 5:54 PM
- As exploration costs fall, Morgan Stanley's emerging markets analysts see the most upside for China's Cnooc (NYSE:CEO), Argentina's YPF and India's ONGC.
- Cnooc boasts the third-largest production growth rates among emerging markets E&P players, the highest realized oil prices and lowest costs within China's top three oil companies, and better production and development know-how than PetroChina (NYSE:PTR) and Sinopec (NYSE:SNP) on offshore reserves, Stanley says.
- YPF's current valuation is attractive due to the near-term growth of the existing asset base, leaving a sizable unconventional upside as a free option, and forex pass-through in fuel prices has been working over the past five months and protecting margins, the firm says.
- Stanley suggests avoiding Gazprom (OTCPK:OGZPY), Ecopetrol (NYSE:EC) and Petrobras (NYSE:PBR), which it calls its least favorite stock as the company will continue to generate negative free cash flow through 2018 and cash flows primarily will service bondholders to the detriment of equity holders.
Jul. 17, 2015, 5:32 PM
- Petrobras (NYSE:PBR) is selling the controlling stake in its Argentine unit, says the governor of Neuquen province that is home to the Vaca Muerta formation, the world’s second-largest shale gas deposit.
- YPF, Pan American Energy, Pluspetrol and Tecpetrol are said to be among the companies planning to jointly buy the ~70% of Petrobras Argentina (NYSE:PZE) owned by the Brazil-based parent.
- Selling the whole stake to a group rather than separate assets to different buyers would speed up the deal and allow the unit to continue operating as a single company, according to the governor.
Jul. 14, 2015, 11:43 AM
- Argentina oil spending is going up, and that's a major reason to buy oil and gas explorer YPF (YPF +5%), according to Credit Suisse, which has an Outperform rating on the stock and a $32 target price implying more than 23% upside from current levels.
- The firm says that from a wider country perspective, there is "a willingness to believe the country can undergo a meaningful de-risking, regain access to international markets, and start to move past its economic issues in a new presidential mandate," while from a company-specific perspective, YPF is uniquely positioned to benefit from all those themes, and is one of the most liquid investment vehicles for investors to get exposure to Argentina.
- In a Credit Suisse measure of return on invested capital, YPF’s upstream performance is ranked only behind peers OMV and Marathon Oil, and just ahead of Chevron; in the downstream, it is just behind Repsol and Chevron.
Jun. 3, 2015, 12:38 PM
- Petrobras (PBR +0.7%) extends recent gains following its sale of $2.5B in 100-year bonds despite a junk rating and a new Buy rating from Tudor Pickering analysts who believe the company will come out of the other side of the corruption scandal in better shape.
- The firm paints an optimistic picture that PBR “will abandon the loss-making refinery projects and be able to freely set pump prices, eliminating some of the massive losses of the past [which] should allow the market to focus on the key upstream positives, in particular its huge pre-salt [deepwater oil] resource... where break-even on the fields are generally less than $50 per barrel."
- Tudor prefers PBR above Latin American E&P companies YPF, which the firm says has less economic oilfields, and Ecopetrol (NYSE:EC), which trades at 8.2x 2016 estimated earnings and has “no growth assets.”
Apr. 23, 2015, 4:49 PM
- Argentina's YPF says it has sold $1.5B of new 10-year bonds at 8.5%, raising its planned issuance from $500M because of strong demand - a far better result than its February sale of $500M of bonds, a third less than it had offered, when many bids were for higher yields than it would accept.
- YPF needs to raise cash to invest in its vast but barely tapped Vaca Muerta shale field in order to reverse Argentina's energy sector trade deficit that is pressuring foreign reserves.
- Separately, Russia's Gazprom (OTCPK:OGZPY) and YPF sign an agreement that sets out plans to jointly explore, produce and transport hydrocarbons in the shale gas-rich South American country and in third countries.
Apr. 16, 2015, 6:19 PM
- The cost of drilling wells in Argentina's Vaca Muerta shale oil and gas formation will fall at least 10% by the end of 2016, after already cutting drilling costs at the vast formation to $6.9M per well from $11M, YPF CEO Miguel Galuccio says.
- YPF currently imports fracking sand from China, the U.S. and Brazil, but Galuccio says Argentina will produce all sand it needs for shale drilling by the end of 2016, which the CEO says will on its own save 10% on well drilling costs.
YPF Sociedad Anonima is an integrated oil & gas company. It upstream operation consists of exploration, development & production of crude oil, natural gas & LPG. Its downstream operation includes refining, marketing & distribution of oil, among others.
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